Amazon recently released a new, cost-effective FBA program for small, inexpensive items. The FBA Small and Light Program is for products that weigh 8 oz or less and generally sell for less than $10. Since FBA Small and Light typically has smaller fulfillment fees than regular FBA, this new program gives sellers a better way to fulfill inexpensive items that might not have enough margin for regular FBA. The FBA Small and Light program is still undergoing development and currently only a small number of sellers are participating.
Advantages of FBA Small and Light
As in regular FBA, in the Small and Light program fulfillment and returns are handled by Amazon, resulting in less work for the seller. Also, sellers are able to take advantage of Amazon’s competitive inbound shipping rates through this program. FBA Small and Light offers free 4-8 day shipping to both Prime customers and non-Prime customers. This is a great way to pull in some non-Prime customers who otherwise might not buy your FBA products. By offering great deals on items that customers don’t need instantly, the Small and Light program could be the beginning of new developments in the FBA market that draw a wider base of customers than traditional FBA.
Possible Disadvantages to Using FBA Small and Light
There are a few possible disadvantages to this new program. First, since these items are not exclusively sold to Prime customers, the Prime symbol does not display with them as it would with most FBA offers. This could cause fewer Prime customers to notice your offer, resulting in lower sales initially. Since the item is not Prime, it may have lower Buy Box eligibility than regular FBA. Also, the packaging requirements for items being shipped into the Small and Light Program are slightly more complicated than the requirements for regular FBA. Units of the same ASIN in the same shipping box must be bundled together in a clear plastic bag or packaged in case packs. These packs of same-ASIN units must then be labelled with the total number of units. This extra work should be factored in when you are considering items for this program, if and when it is available to everyone.
The Future of FBA Small and Light
FBA Small and Light is a new program with a lot of potential. While it has some possible kinks that may need to be worked out, such as competition with more prominent Prime offers, it could lead to a huge expansion in FBA for small, inexpensive items. That could be important for Amazon with upstart competitors like Jet, which claims to offer lower prices by reducing expensive fulfillment costs.
Similar to other Amazon pilot programs, only a limited group of sellers are currently being accepted. If your items are a good fit, you may want to consider applying. At the very least, keep watching for more developments in the FBA Small and Light program.
Originally published on October 7, 2015, updated January 17, 2020
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.
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